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V0126-14 22 January 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Partial spin-off of an apartment rental business line may qualify for special Corporate Tax regime

A company managing a campsite and apartment rentals intends to undergo a partial spin-off to separate these two activities. The DGT examines whether the rental activity constitutes a distinct business line and determines the applicable taxes.

The question raised

1) Whether the described operation may qualify for the special tax regime of Chapter VIII, Title VII of the Recast Text of the Corporate Income Tax Law approved by Royal Legislative Decree 4/2004, of March 5.

The DGT's ruling

The operation may qualify for the special spin-off regime of the TRLIS if the segregated assets constitute an economic unit capable of operating by its own means. For the activity of real estate rental, it is not necessary to comply with the economic activity requirements of the IRPF to be considered a branch of activity. The transfer shall be not subject to VAT if it constitutes an autonomous economic unit. The operation shall be not subject to the ITPAJD and exempt in its other modalities, and shall not accrue the IIVTNU if the requirements of the TRLIS are met.

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